Cost Of Living in Toronto: For Students, Individuals & Family

Enjoy Toronto’s culture smartly—balance costs for city living that’s vibrant and affordable.

Toronto, as the capital of Ontario and Canada’s largest city, boasts a vibrant and diverse cultural scene, a robust job market, and a wealth of amenities. However, with its urban allure comes the inevitable consideration of the cost of living. The average cost of living in Toronto can vary depending on whether you are a student, an individual, or part of a family.

In this article, we will give you an overview of the cost of living in Toronto for these different groups.

How Expensive is Toronto?

From housing prices to groceries, residents and visitors alike have come to expect a higher price tag when navigating the city’s urban landscape. However, just how expensive is Toronto and what are the different types of expenses?

1. Housing: One of the biggest contributors to Toronto’s high cost of living is housing. The real estate market in this bustling metropolis has seen a steady increase in prices, making it one of the most expensive cities to buy or rent a home in Canada. The demand for housing far outweighs the supply, driving prices up across the board.
2. The cost of groceries and dining out in Toronto is also notably high. While the city offers a diverse range of culinary options, eating out regularly can quickly add up.
3. Transportation costs: With a complex public transit system and skyrocketing gas prices, commuting in Toronto can be an expensive affair. Monthly public transit passes or the cost of owning and maintaining a car can easily eat into a monthly budget.
4. Tenant insurance is meant to cover any loss on account of damage to your house. Depending upon the plan you choose it may cover theft or even temporary relocation if you need to move out while the house is being renovated or repaired. Typically the  approximate cost of tenant insurance is anywhere between $15-30 each month.
5. Monthly utility and transportation are two other unavoidable expenses in Toronto. Electricity, water, and heating costs can add up quickly, especially during the winter months when temperatures dip below freezing.
6. Vehicle: Purchasing a vehicle or utilizing public transportation can be a significant expense, considering the high gas prices, insurance rates, and monthly public transit passes.
7. Food and groceries: Eating out at restaurants or ordering takeout can produce a hefty bill, especially in the downtown area, where prices tend to be higher. A mid-range restaurant meal may cost you around $110 for two people. Grocery store prices have also risen over the years, mainly due to the higher operating costs associated with being located in the city.
8. Healthcare costs are another important factor to consider. While Canada has universal healthcare, prescription medications, dental care, and other specialized treatments may not be covered, resulting in out-of-pocket expenses.
9. Entertainment and recreation are popular aspects of Toronto living due to its vibrant arts and cultural scene. However, these experiences do come at a cost. Whether it’s attending concerts, visiting art galleries, or participating in recreational activities, residents should budget for entertainment expenses accordingly.
10. Childcare: According to a report published by the Canadian Centre for Policy Alternatives in 2019, childcare fees in Toronto are the highest in the country, averaging around $22,000 per year for infants under the age of 18 months.
11. Extra-curricular activities: Parents who want their children to engage in sports, arts, or other activities may find themselves paying substantial fees for memberships and classes as well.
12. Taxes play a significant role in the cost of living in Toronto. The city and provincial taxes, including income taxes, sales taxes, and property taxes, all contribute to the overall financial burden of residents. It is essential to consider tax obligations when calculating the cost of living in Toronto.

However, it is important to note that not everything in Toronto breaks the bank. The cost of living may be high but the city provides numerous free or affordable recreational activities, cultural events, and festivals. From exploring the expansive parks and nature trails to visiting museums and art galleries, there are plenty of ways to enjoy the city without spending a fortune.

Additionally, while Toronto is often painted as an expensive city, average wages and job opportunities tend to be higher to match the cost of living. Many individuals are drawn to the city due to its potential for professional growth and prosperity.

How affordable is accommodation in Toronto?

When it comes to finding a place to live in Toronto, the cost of accommodation can vary significantly depending on various factors such as location, size, and amenities. The city offers a diverse range of housing options, from luxurious condos in the downtown core to more affordable apartments in the outskirts.

The downtown area of Toronto is undoubtedly the most expensive part to live in given its proximity to the city centre. On the other hand, if you are seeking more affordable accommodation options, exploring the outskirts of Toronto can be a more viable choice. Neighborhoods like Scarborough, Etobicoke, and North York offer less pricey options without compromising on the quality of life or access to essential services. These areas have good public transportation connections, allowing easy commutes to downtown Toronto.

Cost of Living in Toronto For International Students, individuals and family

Toronto is an exciting and vibrant city, attracting thousands of students from all over the world each year. However, living in the heart of Canada’s economic hub comes with a price tag. Toronto’s cost of living for international students can be quite high, making it essential to plan and budget wisely.

Monthly rent can be exorbitant, especially if you choose to live near downtown or in popular neighborhoods like Yorkville or Kensington Market. A one-bedroom apartment in these areas can easily cost over $2,000 per month, while shared accommodations can range from $800 to $1,500, depending on the location and amenities offered.

Another major expense for students is groceries. While there are plenty of affordable grocery stores and ethnic markets in Toronto, the overall cost of food can be expensive, particularly if you prefer to eat out or opt for organic and specialty items. It’s recommended to create a budget and stick to it, buying in bulk and cooking your own meals whenever possible to save money. On an average, a single person may need to shell out $50-100 a week on groceries.

Transportation is also considerable when living in Toronto. The city’s public transportation system, known as the TTC, offers both buses and subways to move around the city. Monthly cost for passes would set you back by $120 and are ideal if you’ll be using public transportation regularly. However, if you live close to your university or college, walking or cycling may be a more cost-effective option.

If you commute from outside the city, public transportation services like GO Transit train or the MiWay bus system do the job. All three transit systems use the same Presto card payment system.

Entertainment and leisure activities are an integral part of student life, and Toronto offers a wealth of options. From attending sports events to visiting museums and exploring the city’s vibrant nightlife, there’s always something to do. However, indulging in these activities can quickly add up, so again, it’s crucial to budget wisely and take advantage of student discounts whenever possible.

Healthcare is another necessity that students need to consider. In Canada, most basic medical services are covered by the government, but there may be additional costs for medications, dental care, and vision care. It’s advisable to get health insurance coverage either through your university or a private provider to avoid unexpected expenses.

Despite the high cost of living, Toronto offers numerous opportunities for part-time employment for students. Taking up a job will not only help cover some of your expenses but also provide valuable work experience. Many universities and colleges also have job boards and career service centers to assist students in finding employment opportunities.

How to Reduce the Cost of Living in Toronto?

Toronto is undeniably one of the most vibrant, diverse, and exciting cities to live in. However, with the rising cost of living, it’s no secret that many residents are feeling the pinch on their wallets. Thankfully, there are several strategies you can employ to reduce the cost of living in Toronto without compromising your quality of life.

1. Create a budget: One of the first steps you can take to reduce your expenses is to create a budget. By tracking your spending habits, you can identify areas where you may be overspending and make necessary adjustments. Setting a realistic budget will help you prioritize your expenditures, allowing you to save more and spend wisely.
2. Explore alternative housing options: While the city’s downtown core may be desirable, it often comes with a hefty price tag. Consider looking for housing in the suburbs or outskirts of the city, where average rent and property prices tend to be lower. Additionally, shared living arrangements or renting out a spare room can significantly reduce housing costs.
3. Transportation expenses can also be a significant drain on your finances. Instead of relying solely on a car, consider using public transportation or cycling when possible. Toronto’s public transit system is extensive and reliable, providing an efficient way to commute to work or explore the city. Alternatively, opt for a bike, car-sharing services or carpooling.
4. Grocery shopping is an area where you can make substantial savings by adopting some smart habits. Avoiding premium grocery stores and instead opting for discount chains or farmers’ markets can significantly reduce your food expenses. Planning your meals ahead of time and making a shopping list can also prevent unnecessary impulse buying and minimize food waste.
5. Entertainment and dining out can quickly add up, but that does not mean you have to give up on enjoying yourself. Instead of frequenting expensive restaurants and bars, explore local eateries and seek out happy hour specials. Many tourist attractions and cultural events in Toronto offer discounted rates or have certain days where admission is free. Keeping an eye on community boards, social media groups, and local publications will allow you to stay informed about free or low-cost entertainment options.
6. Energy bills: Simple actions like turning off lights when not in use, using energy-efficient appliances, and insulating your home can go a long way in reducing your monthly expenses. The baseline electricity cost is around $60 and you will need to pay as much as you use.

While Toronto may be an expensive city, taking proactive measures to reduce your cost of living is certainly possible. There is also no magic figure of what the average salary should be for one to live comfortably but if you earn around $70,000 a year, you should be able to live reasonably well without cutting corners.

How Expensive Is Toronto Compared to Other Similar Cities?

Rental prices in Toronto can be quite steep, with an average one-bedroom apartment costing around $2,200 CAD per month in the city center. While this figure may be prohibitive for some, it is essential to note that housing costs in other major cities can be equally daunting. For comparison, a similar apartment in New York City would cost approximately $3,000 USD per month, making Toronto’s rental prices appear relatively more affordable.

Grocery shopping, a fundamental aspect of any lifestyle, also contributes to Toronto’s overall cost of living. Prices for groceries are generally higher in Toronto than in many other Canadian cities. However, this is due in part to the relative higher quality and diversity of products available in the city. While grocery expenses might be slightly higher, residents often have access to fresher and more organic produce, as well as a wide range of international food options, reflecting the city’s multicultural fabric.

The city’s diverse population has contributed to the creation of a spectacular array of dining experiences, from street food stalls to Michelin-starred restaurants. The cost of dining out in Toronto can vary significantly depending on the establishment, but on average, a mid-range three-course meal for two people can cost around $85 CAD. While this may appear expensive at first glance, it is in line with the prices of similar dining experiences in other major metropolitan areas.

Toronto’s overall cost of living, when compared to other similar metros, including American cities, is undeniably higher in certain aspects. However, it must be considered alongside the numerous benefits this bustling city offers. Toronto’s excellent transportation system, diverse culinary options, and endless entertainment possibilities are just a few of the factors that draw people to this dynamic metropolis.